Correlation Between Blackline and Ke Holdings
Can any of the company-specific risk be diversified away by investing in both Blackline and Ke Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Blackline and Ke Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackline and Ke Holdings, you can compare the effects of market volatilities on Blackline and Ke Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Blackline with a short position of Ke Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackline and Ke Holdings.
Diversification Opportunities for Blackline and Ke Holdings
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackline and BEKE is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Blackline and Ke Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ke Holdings and Blackline is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Blackline are associated (or correlated) with Ke Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ke Holdings has no effect on the direction of Blackline i.e., Blackline and Ke Holdings go up and down completely randomly.
Pair Corralation between Blackline and Ke Holdings
Allowing for the 90-day total investment horizon Blackline is expected to generate 71.56 times less return on investment than Ke Holdings. But when comparing it to its historical volatility, Blackline is 1.39 times less risky than Ke Holdings. It trades about 0.0 of its potential returns per unit of risk. Ke Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,411 in Ke Holdings on September 3, 2024 and sell it today you would earn a total of 474.00 from holding Ke Holdings or generate 33.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackline vs. Ke Holdings
Performance |
| Timeline |
| Blackline |
| Ke Holdings |
Blackline and Ke Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackline and Ke Holdings
The main advantage of trading using opposite Blackline and Ke Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackline position performs unexpectedly, Ke Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ke Holdings will offset losses from the drop in Ke Holdings' long position.| Blackline vs. Manhattan Associates | Blackline vs. Aspen Technology | Blackline vs. DoubleVerify Holdings | Blackline vs. ANSYS Inc |
| Ke Holdings vs. Marcus Millichap | Ke Holdings vs. Digitalbridge Group | Ke Holdings vs. Jones Lang LaSalle | Ke Holdings vs. CBRE Group Class |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |